The New York-based blockchain application startup known as ConsenSys announced yesterday afternoon that it is partnering with TrueDigital, which is an affiliate of online interest rate swap marketplace trueEx, in an effort to develop a touchstone price for ethereum‘s ether cryptocurrency.
According to the recent announcement, these two firms are planning to design a target reference index for the price of ether (ETH), the second largest cryptocurrency by mark cap, as an initial step towards the end goal of making more crypto trading products available for institutional investors.
The agreement is currently pending approval from the U.S. Commodity Futures Trading Commission (CFTC).
The development arises from the increasing interest in cryptocurrency-related derivative products from institutional investors, the two firms stated.
As previously reported by CBNN, the U.S. Commodity Futures Trading Commission has already authorized trading of bitcoin futures offered by CME Group and the CBOE, which launched in December of last year.
Although currently at an emerging stage, this plan if it is approved, may in fact spark the creation of exchange products for ethereum with an official price index reference.